{"id":87784,"date":"2024-06-28T06:54:51","date_gmt":"2024-06-28T06:54:51","guid":{"rendered":"https:\/\/tin.happy-projects.ro\/keitele-timbers-ceo-is-cautious-about-the-sawn-timber-market-outlook\/"},"modified":"2025-09-18T17:28:27","modified_gmt":"2025-09-18T17:28:27","slug":"keitele-timbers-ceo-is-cautious-about-the-sawn-timber-market-outlook","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/keitele-timbers-ceo-is-cautious-about-the-sawn-timber-market-outlook\/","title":{"rendered":"Keitele Timber\u2019s CEO is cautious about the sawn timber market outlook"},"content":{"rendered":"

Matti Kyl\u00e4vainio, CEO of Keitele Timber has highlighted the industry's struggles in a recent interview for the Finnish media. Kyl\u00e4vainio described the situation as difficult, stating:<\/span> \"There is a lack of demand, and production is not worth it. Forestry's real money-making machine is broken.\"<\/p>\n

Despite this bleak outlook, Kyl\u00e4vainio, in his role as CEO of Keitele Timber, announced an investment program set to increase sawmill production over the next few years. This initiative aims to boost Keitele's sawmill production by 50 percent by 2027, primarily increasing the need for spruce logs by around 400,000 cubic meters per year.<\/p>\n

Kyl\u00e4vainio attributed the current low demand for sawn timber to high interest rates and efforts by timber merchants to reduce their stocks, resulting in more consumption than production.<\/p>\n

The end-of-year outlook remains uncertain, with no lumber sales yet confirmed for the third quarter. \"Back in the spring, in March-April, the situation looked much more hopeful in terms of price development. However, the decrease in interest rates has been delayed. It slows down construction and the revival of sawn timber demand,\" Kyl\u00e4vainio explained.<\/p>\n

Kyl\u00e4vainio also noted that global softwood lumber consumption has dropped by 50 million cubic meters from the peak year of 2021, hitting the European market particularly hard. He remains optimistic about a potential market recovery: \"The drop in interest rates, if realized, can quickly strengthen the demand for lumber. When the recovery starts, wholesalers try to increase their stocks. In this way, demand can initially grow faster than consumption.\"<\/p>\n

Shortly after this interview, the European Central Bank lowered its key policy rate by a quarter of a percentage point, potentially signaling a positive shift for the industry.<\/p>\n

Keitele Timber's 40 million euro investment aims to increase the Keitele sawmill's production by 50 percent, a move that Kyl\u00e4vainio believes is supported by the significant additional need for domestic wood for the fiber and energy industries. This increase in pulpwood purchase is expected to bring more logs to the market.<\/p>\n

Kyl\u00e4vainio remains cautious about predicting future log prices. \"Before long, the relationship between the prices of logs and lumber must be profitable for sawmillers. At the current log price level, the average export price of lumber should be at the level of 250 euros,\" he said.<\/p>\n

In June, the Foex index showed the price of lumber at 250 euros, but Kyl\u00e4vainio cautioned that this does not reflect the whole picture. The average price of customs statistics provides a more accurate measure of export revenue.<\/p>\n

Looking ahead, Kyl\u00e4vainio is optimistic about the long-term prospects for Finnish sawmills and forest owners. He pointed out that while demand for sawn timber is increasing, Sweden's forest resources have been overused, and extensive forest destruction in Central Europe and Canada limits sawing capacity, potentially benefiting Finnish producers.<\/p>","protected":false},"excerpt":{"rendered":"

Matti Kyl\u00e4vainio, CEO of Keitele Timber has highlighted the industry’s struggles in a recent interview for the Finnish media. Kyl\u00e4vainio described the situation as difficult, stating: “There is a lack of demand, and production is not worth it. Forestry’s real … Continue reading →<\/span><\/a><\/p>","protected":false},"author":1,"featured_media":49943,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[4716],"tags":[],"class_list":["post-87784","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-trends"],"acf":[],"yoast_head":"\nKeitele Timber\u2019s CEO is cautious about the sawn timber market outlook - Timber Industry News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.timberindustrynews.com\/ro\/keitele-timbers-ceo-is-cautious-about-the-sawn-timber-market-outlook\/\" \/>\n<meta property=\"og:locale\" content=\"ro_RO\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Keitele Timber\u2019s CEO is cautious about the sawn timber market outlook - Timber Industry News\" \/>\n<meta property=\"og:description\" content=\"Matti Kyl\u00e4vainio, CEO of Keitele Timber has highlighted the industry's struggles in a recent interview for the Finnish media. 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